Common use of Performance Deductions Clause in Contracts

Performance Deductions. Pursuant to the C-70 Project Agreement, a failure to perform certain obligations by the Developer may result in Monthly Performance Deductions to the Performance Payments. Except as otherwise provided specifically herein, the Parties agree to credit the amount of such Monthly Performance Deductions occurring during the Operating Period between CDOT and HPTE based on the Pro-Rata O&M Cost Calculation, provided that: a. Deduction amounts arising as a result of: (i) the Closure of a Tolled Express Lane as set forth in Section 3.2 of Part 3 of Schedule 6 to the C-70 Project Agreement, in an amount equal to the difference between the Closure Deduction for the Closure of a Tolled Express Lane and the Closure Deduction for the Closure of a single General Purpose lane, such that the difference represents the additional deduction intended to compensate for the loss of toll revenues (as such amounts are indexed on an annual basis); and (ii) Operating Period Noncompliance Events 2.57 and 2.64 (relating to ETC System Outages) and set forth in Table 6A.2 of Appendix A of Schedule 6 to the C- 70 Project Agreement, shall each be credited 100% to HPTE; and b. All Monthly Performance Deductions will be allocated first to a reduction in the OMR Payment, and second, to the extent that such Monthly Performance Deductions exceed the OMR Payment, to a reduction in the Capital Performance Payment, thereby resulting in a reduction to the BE CPP Obligation (and the Central 70 Net Payment transferrable from the Trustee to the Developer under the Supplemental Indenture). For the avoidance of doubt, such reductions to the BE CPP Obligation will not be repayable to CDOT or HPTE in any future period. Any excess CCD O&M Amount available as a result of Monthly Performance Deductions exceeding the OMR Payment due in such month shall be applied proportionately to reduce the CDOT OMRP Obligation and HPTE OMRP Obligation due in the following month.

Performance Deductions. Pursuant to the C-70 Project Agreement, a failure to perform certain obligations by the Developer may result in Monthly Performance Deductions to the Performance Payments. Except as otherwise provided specifically herein, the Parties agree to credit the amount of such Monthly Performance Deductions occurring during the Operating Period between CDOT and HPTE based on the Pro-Rata O&M Cost Calculation, provided that: a. Deduction amounts arising as a result of: (i) the Closure of a Tolled Express Lane as set forth in Section 3.2 of Part 3 of Schedule 6 to the C-70 Project Agreement, in an amount equal to the difference between the Closure Deduction for the Closure of a Tolled Express Lane and the Closure Deduction for the Closure of a single General Purpose lane, such that the difference represents the additional deduction intended to compensate for the loss of toll revenues (as such amounts are indexed on an annual basis); and (ii) Operating Period Noncompliance Events 2.57 and 2.64 (relating to ETC System Outages) and set forth in Table 6A.2 of Appendix A of Schedule 6 to the C- 70 C-70 Project Agreement, shall each be credited 100% to HPTE; and b. All Monthly Performance Deductions will be allocated first to a reduction in the OMR Payment, and second, to the extent that such Monthly Performance Deductions exceed the OMR Payment, to a reduction in the Capital Performance Payment, thereby resulting in a reduction to the BE CPP Obligation (and the Central 70 Net Payment transferrable from the Trustee to the Developer under the Supplemental Indenture). For the avoidance of doubt, such reductions to the BE CPP Obligation will not be repayable to CDOT or HPTE in any future period. Any excess CCD O&M Amount available as a result of Monthly Performance Deductions exceeding the OMR Payment due in such month shall be applied proportionately to reduce the CDOT OMRP Obligation and HPTE OMRP Obligation due in the following month.